The National Association of Securities Dealers (NASD) has a vision.

They see two North American Markets by 2010. They see the New York Stock

Exchange (NYSE) as the "traditional" Market. The NASD expects to own

Everything else. They'll be the Market of Cyberspace. Since they operate

NASDAQ, the second largest market in the States, their vision isn't wishful

Thinking.

The NASD has acquired the American Stock Exchange (AMEX) and the

Philadelphia Stock Exchange. They are trying to acquire the remaining

Regional American Stock Exchanges. They intend to include the Toronto Stock Exchange (TSE) in their vision.

The NASD will sell the Over-the-Counter Bulletin Board (OTCBB) in

The next five years. The reason is the NASD's reputation is at risk from

unethical OTCBB trading. And the OTCBB, like the Western Canadian Stock

Exchanges will face growing competition from Cyberspace.

The NYSE wants to expand. They are considering taking the NYSE

Public to raise money to compete with the NASD in Cyberspace. I suspect

they will be competitive bidders for the remaining American regional Stock

Exchanges and the TSE. The NYSE sales pitch will stress status.

I doubt the merger of the Vancouver, Alberta and Winnipeg Stock

Exchanges will work. Along with the Canadian Dealers Network in Ontario,

Canada's risk capital markets will be history within the next twenty years.

Also, I suspect that the Montreal Stock Exchange will disappear by 2020.

The reasons for failure involve the credibility of these markets combined

With increased competition from Cyberspace.

The Frankfurt (German) Stock Exchange (GSE) has a NASD vision for

Europe. It sees the International (London) Stock Exchange (ISE) as the

traditional market in the 21st Century. The Germans intend to consolidate

Everything else. The German Stock Exchange's problem is overcoming national sensibilities in Europe.

The end game for the NASD and GSE would be the merger of their

Networks around 2015. They would leave the NYSE and ISE as backwater

"Traditional markets." It will take at least an additional ten years for

The NASD and GSE to merge. If it happens, it will occur after 2020.

Recent history suggests that the Asian markets will move to

Consolidate. The Europeans created their Union. The North Americans

Followed with NAFTA. The Asians were forced to create ASEAN. The American and European Stock Market integration will force Asian Stock Markets to consolidate.

The wild card in the 21st Century Stock Market Cartel plan is the

Net. Several years ago, Wit Capital failed to create an online Stock Market

In the United States. However, the U. S. Securities and Exchange Commission

(SEC) is being forced to allow Net Stock Exchanges. At present, there are

Two LEGAL Net Stock Exchanges. One serves small capital investors. The

Other serves "after-hours" institutional traders.

In the beginning, the SEC used "Cease & Desist" orders to close

Down Net Stock Exchanges. Today, there are at least twenty American Net

Stock Exchanges trading without the blessing of the SEC. The American

Prohibition Era exemplifies the SEC's problem. They can't stop unlicensed

Net Stock Exchanges, so they'll move to regulate them.

The SEC is in a quandary about regulating the Internet. The rest of

The World is unlikely to try. Like online gambling, local Net Stock

Exchanges create jobs in places that never heard of Wall Street.

As the established stock markets consolidate, the Net will see a

Proliferation of Net Stock Exchange. The hundreds of these Stock Exchanges

Will fragment the risk capital market. The limiting factor isn't the SEC.

It's time to allow a computer-literate generation to have the disposable

Capital necessary to feed the dreams of the next generation of speculators.

It will happen by 2010.

As the established Stock Markets consolidate and the risk capital

Markets fragment on the net, nobody is looking for the Bear. We are in the

Midst of the greatest Bull Market in History. It's time to go public. It's

Time to build your company. It's time to sell your company at Market

Capitalization. Then, it will be time to adopt a capital protection mode.

The reason is the Bear is coming. It will probably arrive between

2010-2015. When it arrives, it will herald the worst Depression since the

Beginning of the Technological Revolution. The NASD & Germans will survey their empire as the Bear steps upon them.